Council tax alert: Calls for rate 'freeze' as bill receipts rise by 214%

Woman looking at letter and council tax form

Council tax receipts have skyrocketed in recent years

GETTY
Patrick O'Donnell

By Patrick O'Donnell


Published: 15/08/2024

- 14:28

The tax burden for Britons is continuing to rise, based on new analysis

Council tax receipts have skyrocketed in recent years by 214 per cent with experts calling for the Government to introduce a "freeze" on any further hikes to the levy.

Analysis of new Government data has found that council tax has increased by 214 per cent since 2000.


The Taxpayers' Alliance reports that tax bills have jumped rom £12.2billion in 2000-01 to £38.5billion by 2023-24.

Over the last decade, receipts have risen by more than 61 per cent, with the 7.5 per cent increase in 2021-22 being largest hike in almost 20 years.

Three of the last two largest percentage receipt rises have came about in the last five years, according to the think tank.

The region in the UK with the largest percentage increase in Q1 receipts from 2023-24 to 2024-25 was the North East England.

Do you have a money story you’d like to share? Get in touch by emailing money@gbnews.uk.

Council tax bill in picturesTaxpayers are struggling with the unsustainable burden of council taxPA

Tax collected over the period went up by 11.7 per cent which is nearly was almost five percentage points higher than the regional average for England.

In terms of the largest percentage increase, Durham was the top local authority with council tax rising by by 34.2 per cent.

This hike was 27.7 percentage points higher than the local authority average across England.

The local authority with the largest percentage increase in Q1 receipts from 2010-11 to 2024-25 was Tower Hamlets with council tax going up by a staggering 160 per cent.

In response to this, campaigners are calling for the Government to consider a "freeze" on future hikes to council tax.

Data data published by the Ministry of Housing, Communities &Local Government found that outstanding council tax arrears have reached a total of £6billion as of March 31.

This represents a nine perc cent year-on-year rise and an 71 per cent increase since before the pandemic.

In the 2019-20 tax year, the total outstanding arrears stood at £3.5billion.

Rachel Reeves

Reeves is facing calls to "freeze" the levy

GB NEWS

Benjamin Elks, grassroots development manager at the TaxPayers' Alliance, broke down why a "freeze" on council tax is needed.

He explained: "Local taxpayers will be outraged to see that they’re handing over more and more while basic services continue to crumble.

"As household budgets are squeezed, local authorities squander cash on pet projects, pointless non-jobs, and risky property speculation, all the while leaving residents with the bill.

"Councils should crackdown on waste and freeze council tax, giving some relief to hard-working local taxpayers.”

You may like